New answers tagged

0

Travel insurance is about three things: Making the insurance company rich. Not dying, and not needlessly losing an arm or a leg in case of an accident. Not getting poor in case of an accident where you don't lose an arm or leg. If you are OK with (2) and (3) then you can indeed go without travel insurance, and save the money. Otherwise, seeing how travel ...


1

Understanding what insurance IS makes decisions much easier. Insurance is a means of spreading low probability high cost risk among many people so that for the average insuree it turns into a low cost certain-probability payment. Insurance is a risk sharing arrangement between a large number of people. For a large group, if you share the cost of a risk ...


1

Basically, timing and luck. If you average everything, then saving your own money will perfectly reach the target exactly when you need it. But there's a small chance that something terrible will happen, at a terrible time. So, (extreme example) paying insurance means that when you need a team of doctors to fly with you back to your home country, ...


1

If you are reasonably well-off, you may not need all the fripperies of travel insurance. Miss a flight because the scheduled connection failed? Just buy another ticket. Somebody steals your bags? Go shopping. This is self-insurance. If the amounts of money involved are small in the context of your overall wealth, it's a decent plan. (Do bear in mind that a ...


2

As a few have already pointed out, your assumptions are wrong. You'd need to go on a lot of trips to make the expected outcome. Insurance pools risk, so medical emergencies don't bankrupt you or lack of funds prevent you from getting the care you need. Add a few zeros'to both of your assumptions, 0.0001 chance of getting injured (1 out of a 10 000 tourists ...


12

You need travel insurance because otherwise you'd have to save a lot. I don't know which country you're from where a broken leg requiring a helicopter trip sets you back only $5'000. In US, a broken leg in need of a surgery will cost $15'000 to $35'000, and air ambulance services may cost about as much, or even more. Frostbite treatment is not cheap either, ...


3

Self-insurance is worth consideration, though in some places you are required to purchase and provide proof of some kind of insurance by the authorities, especially for longer stays, with minimum insured amounts. They do that so they won't get stuck with the bill for an indigent visitor or be forced to deny care. Typically that's still for relatively long-...


50

What you've described is the case for all insurance. If the expected value of the insurance policy for the average buyer costs more than the premium, the insurance company will eventualy go out of business because they're paying out more in claims than they collect. All insurance, on average (as phoog notes, if you know your own risk is higher than average ...


14

Your math is correct, but only makes sense on a large scale. Let's take an even simpler example. Assume the chances of you falling sick on a given trip is 1%, and the medical and transportation costs incurred in case of sickness are $10,000. Furthermore, assume the insurance premium is $150 per trip. If you took 1,000 trips and fell sick on 10 of them, it ...


4

Travel insurance usually comes with health insurance for the duration of your trip. If you live in a country which has good state-provided healthcare, and travel to a country which does not have a reciprocal arrangement, you will normally have to pay all medical costs you incur. If you accidentally slip and break a leg, or suffer a heart attack, you can ...


16

Doesn't it make sense to, instead of buying travel insurance, just save the money you would otherwise pay for it and when something happens to you, pay it from this saved money? Frequently, yes, but as other answers note, some of the things you might have to pay for can cost more than you probably can save. Medical evacuation can cost more than most people ...


47

"Why should you have travel insurance?" - because the insurance company makes money from it. That is their reason to offer it. What is your reason to have insurances? If you have the need to cover your potential loss because it's catastrophic for your personal situation. You definitely should cover your house with insurance, because if it burns down, you ...


3

I do not worry about insurance that will pay if I can not make the travel, unless I have to pay most of the travel in advance. By now I have saved enough money that I can forget a ticket bought in advance as long as I can cancel the hotel free of charge (which I often can.) But that same reasoning will not go for travel insurance which does cover ...


2

At first - if you want check the requirement for visit of Italy you can check this link - this website officially connected with Italian international authorities. For Mexico it seems that you need only valid passport and you do not need the visa if your travel less than 90 days. There is nothing about insurance and mainly I never heard about insurance check ...


2

Your travel is apt to begin in the departure date, but if you are delayed en route, it could end a day or two later. I'd choose a insurance end date a day or three after your planned arrival.


5

So I found this FAQ on https://www.travelinsuranz.com.au/page/FAQs: What dates should I enter when getting a quote? Your policy start date is the date that you leave your home in Australia. You will be covered under the cancellation section of your travel insurance from the moment you buy your policy until the date you leave Australia. The end ...


Top 50 recent answers are included